Facts about China: MANUFACTURING

CHINA MANUFACTURING: THE WORLD’S FACTORY

China is expected to be the world’s biggest manufacturing nation in 2011, when it is expected to end the U.S.’s 110-year run as the number one country in factory production. In 2009, the U.S. created 19.9% of the world’s manufacturing output, compared to China’s 18.6%.
[ IHS Global Insight, a US-based economics consultancy ]

According to a 2008 National Geographic cover story “China: Inside the Dragon”:

70% of the world’s umbrellas are made in China.

60% of the world’s buttons are made in China.

9% of Chinese goods sent to the U.S. end up on Wal-Mart’s shelves.

72% of U.S. shoes were made in China.

85% of all U.S. artificial Christmas lights are made in China.

50% of U.S. kitchen appliances are made in China.

50% of U.S. toys are made in China.

CHINESE WORKFORCE & WAGE INFLATION

China has the world’s largest manufacturing workforce with over 112 million workers.
[The Economist “The next China” July 29, 2010 ]

The average Chinese manufacturing worker only makes US$0.81 an hour (about 2.7% of their American counterparts).
[The Economist “The next China” July 29, 2010 ]

The era of cheap Chinese labor will be over soon. Having risen during the first decade of the 21st century, the number of Chinese aged 15 to 29 will drop off sharply after 2011, according to the United States Census Bureau. According to the Economist, “A number of economists believe China has reached a turning-point in its development, having exhausted its supply of surplus labour.”
[The Economist “The next China” July 29, 2010 ]
[ Click here for my article: China’s Population: A Looming Demographic Time Bomb ]China’s manufacturing is predicted to move to the inland provinces, as wages continue to rise in the wealthier coastal provinces. The Economist writes, “The next China may instead lie closer to home: within China’s borders, but away from its coasts.”
[The Economist “The next China” July 29, 2010 ]